Abu Dhabi’s Mubadala Investment Company and Goldman Sachs have formed a $1 billion partnership to co-invest in private credit opportunities in the Asia-Pacific region.
Managed by Goldman Sachs Alternatives’ private credit division, the partnership will have a dedicated team in various Asia-Pacific markets. It will leverage Goldman Sachs’ network and expertise to identify and assess global lending opportunities.
“This partnership bolsters the expansion of our Asia Credit platform and investment in new opportunities across the Asia-Pacific region where bespoke credit solutions are needed,” said Marc Nachmann, Global Head of Asset & Wealth Management at Goldman Sachs. “We continue to believe our rigorous underwriting and dedicated on-the-ground sourcing provides us differentiated investment opportunities.”
The goal is to expand investment activities in the growing Asia-Pacific credit market by deploying $1 billion in long-term capital. The partnership will offer tailored private credit solutions to high-quality companies and regional sponsors, focusing on India.
“With strong economic growth in the region and favourable conditions for private lenders to support the growth of leading companies by providing flexible, long-term capital, we believe we are at the early stages of a defining era for private credit in Asia-Pacific,” said Greg Olafson, Global Head of Private Credit at Goldman Sachs Alternatives.
Mubadala’s Credit Investments unit, operating since 2009, has primarily invested in private debt in North America and Europe but now focuses more on the Asia-Pacific credit market.
“The diverse and rapidly growing economies, as well as the increasing private equity deal volumes, are significantly driving demand in Asia-Pacific for customised credit solutions from non-traditional lenders,” said Omar Eraiqat, Deputy CEO of Diversified Investments at Mubadala. “This partnership with Goldman Sachs compliments our aspirations to grow our private credit exposure in APAC, a region that is central to Mubadala’s strategic growth initiatives.”